Construction estimates are proving to be the biggest growth driver in the housing market in 2018.
The Government has announced a record £5.7bn for new construction loans over the next three years, according to a report from Nomura.
It means house prices in England and Wales are up by 7.2 per cent, the report shows.
But it is not all good news for homebuyers.
There are still some big challenges ahead for homebuilders as the Brexit process approaches, according the report, which suggests there are more hurdles ahead for many new homebuilding plans.
As part of its research for the report Nomura looked at a set of construction loan guarantees that were issued by the UK government between September and December last year.
The loans are guaranteed by the government’s Department for Communities and Local Government.
The guarantees are for construction loans, meaning that buyers can apply for them to finance a new home.
New homebuilding has been hit by rising demand from the global financial crisis, but demand is still growing in the UK.
It is the fourth year in a row that the UK has seen the biggest increase in new home construction, but the new figures are the first to show that demand has picked up in the past three months.
The number of new homes that were approved in the month of December rose by 15 per cent to 5,958.
Of these, 1,732 were completed, with the remainder either delayed or abandoned due to the economic uncertainty.
The number of construction loans issued increased by 11 per cent last month to 1,823, with 1,037 of those being cancelled.
In terms of new home lending, there were 534,000 construction loans outstanding in the 12 months to December 2018. “
We have been working closely with the industry and housing associations to support the industry as the Government is building on the strong foundation we established in 2018.”
In terms of new home lending, there were 534,000 construction loans outstanding in the 12 months to December 2018.
This is down slightly from 534 by the same time last year, but is up from 517 by the end of September 2018.
House prices rose by 6.5 per cent in the first quarter of 2019, but remain well below the record highs seen in 2018 and 2019.
In the second quarter of 2018, house prices increased by 6 per cent compared with the same period last year as the cost of living rose by 3 per cent.
And in the third quarter of 2020, house price growth slowed to just 0.3 per cent as mortgage rates declined.
However, house construction is not the only area where prices are rising.
There are also growing concerns over the supply of homes.
According to Nomura, the demand for new homes is expected to reach a record high in 2021, with prices rising by 6,200.
While there has been a significant slowdown in new house building in 2018, there has also been a rise in the supply.
At the same point in 2018 there were around 6,500 properties that were sold.
But while the number of properties sold has fallen over the last 12 months, the number that have been sold in the last five years has risen by nearly 10 per cent and by 2,700 in the previous two years.
This is due to a combination of factors including a number of factors that are pushing house prices higher, such as a surge in demand from overseas, a weaker pound, a stronger housing market, the economic outlook for the UK, and a drop in the cost for overseas buyers to finance home purchases.
“These factors mean that the supply growth in the country is outpacing demand,” Nomura said.
“The fall in the price of oil has also played a part in pushing up house prices, while Brexit uncertainty and a weaker sterling are also contributing to the increase in demand.”
“The key drivers for price growth are domestic demand and a strong economy,” it said.
Nomura’s latest report comes on the back of an analysis by housing consultancy Zillow which shows that house prices are up almost 9 per cent over the past year.
Zillow has been tracking house prices since 2000.
Data from the British Association of Realtors and other data from the National Insurance Institute (NI) show house prices rose in every region of the country between January and June 2018, but London’s market remains the biggest hotbed.
London house prices soared by almost 9% in the year to June 2018 over the previous year, according a report by NAB.
The price rises were driven by a fall in mortgage rates and a fall at the bottom end of the market.
BAR is the biggest single city in the United Kingdom, with a population of around 17.7 million.
The city has experienced a boom in new